5. Economic Development and Population Results
The past decade has seen significant changes in the agricultural make up of the Southland district. The district now contributes 5% of the national dairy herd, compared to only 1.4% in 1991. The number of dairy farms in Southland has increased from approximately 200 in 1990 to 520 in 1999. Further expansion in dairy numbers is planned for coming years.
Deer numbers have risen steadily and the district has seen the emergence of intensive horticultural activities. The increases in dairy and deer numbers have mainly been at the expense of sheep production. The district's sheep population has fallen in absolute numbers and as a proportion of the national flock. However, sheep meat and fibre production are still the dominant pastoral activities
The district has also seen significant growth in the forestry sector, both in terms of plantings and in processing capacity. The expansion in the forestry estate has occurred in both softwoods and hardwoods. The total area in exotic forestry stood at an estimated 68,550 hectares in April 1998 (Appendix Four, Annex A). The majority of the estate is comprised of Radiata pine, as is shown in Appendix Four, Annex B. The resource has a mean age of only 9.9 years (Appendix Four, Annex C). Associated with this increase in the forestry estate has been new investment in processing facilities. These investments are summarised in Appendix Five.
The population in Southland district has been held at around 30,500 in the 1990s, after years of decline in the 1980s. The decline was stabilised during the early 1990s, with the population at the 1996 Census showing only a marginal decline on 1991 levels (See Appendix One, Annex A). In comparison, Invercargill City and the Gore district have continued to lose population.
Table Two: Numbers of Livestock and Forestry in Southland District 1999
Number 1999 |
% of National 1991 |
% of National 1999 |
|
| Sheep | 4,700,000 |
15.4 |
12.0 |
| Dairy Cattle | 160,000 |
1.4 |
5.0 |
| Beef Cattle | 160,000 |
3.1 |
4.5 |
| Deer | 191,000 |
12.5 |
14.0 |
| Plantation (ha) | 68,500 |
3.0 |
4.0 |
The investment drawn into Southland by the initiatives described in Table One has ranged from a few thousand dollars through to tens of millions of dollars. The larger scale investments have typically been in the area of processing. The upgrading of the Brightwood and Graigpine sawmills have cost in the $7-$10 million range while the expansion of the New Zealand Dairy Group facility cost in excess of $150 million.
Investors have been drawn to Southland over other districts for a combination of reasons. These include:
- the availability of land at competitive prices;
- appropriate growing conditions for dairy cattle and timber species;
- high quality infrastructure;
- strong council support for initiatives; and
- (proximity to energy/mineral resources.
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Rural Affairs Coordinator
Sector Performance Policy
MAF Policy
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0675
Fax: +64 4 4 894 0745
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